Businesses for Sale in South Africa

Connecting business buyers to sellers is our business, and the Businesses4Sale experience is tailored to cater to everyone interested in buying a business. Whether you are a first-time buyer, looking to enter the market; a franchisor, searching for franchisees; or seasoned buyer looking to expand, our experienced team at Businesses4Sale will support you throughout the whole process. Businesses4Sale offers our clients professionalism, experience, expertise, and knowledge in the process of buying a business.

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Industrial Manufacturing

Building and Construction

Ref: 3051

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Handyman Business

Western Cape (WC - Cape Town Region)

Asking Price

R 686,250

Annual Turnover

R 2,084,716

Monthly Cash Flow

R 35,536

Successful and well-established handyman business operating for over 4 years. This business has managed to grow into a busy and profitable enterprise with a small team. They offer a wide variety of services and do various jobs such as painting, carpentry, plumbing, cabinetry and general renovations. This owner run business focuses primarily on building and construction work in residential & commercial markets taking on various building and renovation projects. The business operates from the Atlantic Seaboard and serves the surrounding areas. The business prides itself on their quality of work and customer service levels, they boast with very complimentary online reviews. The business has two fully equipped vehicles and a team of permanent trained staff. The business can perform most contracting work and rarely need to use sub contractors. The business has a strong online presence through their website and social media pages and conduct most of their marketing activities online.
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Industrial Manufacturing

Manufacturing

Ref: 3012

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Interior Design & Manufacturing

Western Cape (WC - Garden Route)

Asking Price

R 1,675,000

Annual Turnover

R 4,312,588

Monthly Cash Flow

R 62,416

Since 2009, this successful and profitable interior design and furniture manufacturing business has been beautifying houses and commercial properties. The business is based in the Garden Route. This operation has an in-house upholstery workshop and furniture manufacturing division that makes this a one-stop service shop for all interior needs. The staff are skilled and experienced to refurbish, re-upholster and design and manufacture according to the clients requirements. The company shares longstanding relationships with national and international reputable suppliers. The business has a customer base in both the residential and commercial markets, servicing the middle to higher LSM section of the market. This is the ideal opportunity for a husband and wife team who are business savvy and have a background in the interior design or manufacturing industry. Asking price excludes stock of ± R600,000 and VAT.
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Industrial Manufacturing

Furniture/Timber

Ref: 3005

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Manufacturer - Wholesale and Retail

Mpumalanga (MPL)

Asking Price

R 8,362,500

Annual Turnover

R 10,142,080

Monthly Cash Flow

R 133,589

Top wood manufacturer and factory with a strong client base and a great track record are now available. One stop Factory for all your solid woodwork, cut and edge, wrap, laminate, and granite tops requirements. Build and installation of kitchens, doors and special custom products for wholesale and DIY projects. In house 3D design work further supports the DIY and contractors market. This business opened its door in 1997 and is a beacon in Secunda, the Highveld area and is a well-known landmark known for its superior products and services. The area is an economic growth point in Mpumalanga, and with Sasol and subsidiary companies, it has a large financially strong client base. A significant opportunity for growth exists for the new owner as this factory can use its dominant position to develop the area to Nelspruit where no competition exists today. The knowledge and capacity of current teams could give an inexperienced owner enough support and confidence to grow into the business. A decent hand-over and training plan will further equip the new owner. Asking price includes property and building but excludes stock of approximately R 450 000 and VAT.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 3000

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Water Treatment Solutions Company

Western Cape (WC - Garden Route)

Asking Price

R 4,240,000

Annual Turnover

R 4,741,529

Monthly Cash Flow

R 81,704

Southern Africa is entering an era of water uncertainty, both in terms of quantitative resources (not enough water) as well the increasing lack of water quality for human and agricultural consumption. This business delivers a high in demand and much-needed service providing solutions through the supply or design of cost-effective water treatment and recycling systems that allow Southern Africans to improve the quality of life now and into the future. On offer is 100% shares in a successful company based in the Garden Route, Western Cape, South Africa. This company serves the growing need in water treatment (primarily) and alternative residential and light commercial energy (secondary) supply solutions in Southern Africa. The business model is built on the principle that the operation can solve client needs related to water treatment and energy via sustainable and cost-effective solutions. The clients needs are determined and analyzed and a customized solution is designed, manufactured and installed in line with the clients budgets and operating needs. Post-installation servicing and maintenance are provided to all systems installed. This successful business, imports products which are used to manufacture custom-designed commercial, industrial and large residential renewable systems. These units are either supplied and installed for clients nationally in South Africa or exported depending on the client’s needs. The business has been in operation for more than 12 years and has a national and international customer base. It has an excellent reputation and is one of the only service providers of its kind in Southern Africa. This is the ideal opportunity for someone with a plumbing or commercial electrical experience, or an entrepreneur with experience in the renewable energy field. The seller is prepared to retain a percentage share in the company with an exit strategy agreement, alternatively, he will commit to an extended period of assistance to ensure a smooth handover and transition. This is a great opportunity that requires an entrepreneur with good management skills who will be hands-on involved in the day to day operations of the business. The selling price includes a stock of no less than R1m.
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Industrial Manufacturing

Clothing/Footwear

Ref: 849

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Established Dance Clothing Outlet

Western Cape (WC - Cape Town Region)

Asking Price

R 286,250

Annual Turnover

R 488,363

Monthly Cash Flow

R 4,811

Situated in a newly refurbished mall on a busy main road in the heart of a shopping district in the southern suburbs, Cape Town, this family-owned retail outlet has been supplying specialized dancewear since 1981. Established by a qualified dancer herself who understands the dance world and its requirements, they are able to cater to various dance types including Ballet, Modern, Latin, and Ballroom. The range consists of clothing as well as shoes. Being situated next to a hi-tech gym will enable them the opportunity to tap into the fitness industry and expand its product range. They have been supplying the local dance community with all their requirements for almost 40 years and have an established client base. They give specialized and personalized attention to all their customers They do orders for special functions as well as weddings. Clients are able to place their orders online and thus clients situated outside of Cape Town can also be assisted. This business will be revitalized by a new hands-on owner as due to ill health the current owner is unable to give the business enough time and attention. Dance has been around for years and will be for years to come thus the new owner is guaranteed to benefit from the purchase of this business. Selling price excludes VAT and stock with an estimated value of +/- R 180 000.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 824

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Established Shading Manufacturer

Western Cape (WC - Garden Route)

Asking Price

R 540,000

Annual Turnover

R 1,520,473

Monthly Cash Flow

R 20,529

The business is based in a beautiful town in the Garden Route. The business is established since 2004 business, situated in the die industrial area of this fast-growing Garden Route town. The business provides shading services in the larger Southern Cape and Klein Karoo area. The wide variety of products ranges from residential to commercial shade solutions including Shade ports, carports, and canopies. They are also agents for supplying and installing a variety of blinds. This business also manufactures steel frame gates. They pride themselves in excellent workmanship, customer services, and quality control of all products. The owners are involved with the manufacturing and installation and also handles all client liaison. The business consists of an experienced team of professional installers or manufacturers ensuring that every order is perfect and that they deliver good quality products. The business is easy to manage and has a lot of growth potential. This is the ideal opportunity for a service orientated entrepreneur with good communication skills and who does not want to be office-bound. Asking price excludes stock of ± R100,000 and VAT.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 801

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Stainless Steel Fabricator

Western Cape (WC - Garden Route)

Asking Price

R 750,000

Annual Turnover

R 1,547,000

Monthly Cash Flow

R 58,200

A Stainless Steel workshop in the Garden Route is looking for a new owner. Equipped with adequate machinery and support equipment/tools, the business will require someone who knows about steel fabrication. There is no middle management; the new owner would have to lead from the front, doing everything from quoting to work specification to collecting the money. Growth is entirely up to the new owner; there is adequate capacity for some growth, the business only has one permanent staff member currently. The client base is extensive, from Marine applications, builders, developers, architects, etc. This is an attractive feature of the business which has been in existence since the early 2000s The adage A new broom sweeps cleaner will certainly apply to this opportunity; priced correctly for the current state of the business, a new owner can make a difference very quickly, and add value. The Asking Price excludes VAT and minimal stock on hand.
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Industrial Manufacturing

Manufacturing

Ref: 780

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Niche Ceiling Fan Manufacturer

Western Cape (WC - Cape Town Region)

Asking Price

R 4,370,000

Annual Turnover

R 5,663,376

Monthly Cash Flow

R 105,089

This companys showroom is temporarily closed due to COVID-19, but the telesales function, as well as online quotations and sales, continue as normal. Are you a hands-on entrepreneur with strong marketing and management skills? This is a business that will offer you above average income, while you enjoy a quality lifestyle in the beautiful Garden Route. This leading, very successful and profitable company specializes in manufacturing individually hand-built energy-efficient ceiling fans. With a national and international market presence of almost two decades, it is situated in the Garden Route, Western Cape. The company is reckoned as a reputable manufacturer & exporter. Supported by a small complement of highly skilled production staff as well as a strong and experienced operational team, this business is easy to manage. All figures can be verified. The buyer can depend on the sellers support to ensure a smooth handover. The asking price excludes stock of ± R1,850,000 and VAT.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 756

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Successful Manufacturing Company

Western Cape (WC - Cape Town Region)

Asking Price

R 18,000,000

Annual Turnover

R 9,863,864

Monthly Cash Flow

R 169,272

This profitable manufacturing company allied to the building and civil engineering industry was started in 2007. The staff has over 40 years of technical experience combined. They currently service a well-established client base throughout Africa. All products are manufactured from the highest quality materials which are SABS approved. They are accredited for SABS EU standards for certain product lines which offers more opportunity to supply a broader client base. Currently well advanced to manufacture according to EU spec which will open more market opportunities. There are many growth opportunities for this business such as scaling: you are able to increase production by adding workers and material. The infrastructure is well poised to handle additional staff and projects to increase production that can easily support sales in excess of R2 million per month. This can result in an increase in sales to neighboring states and online sales. Staff incentive schemes have been implemented that ensure costs are maintained thus ensuring that projected gross profits are met. The possibility of the expansion includes the manufacture of new items. The state of the art internationally acquired equipment can facilitate the production of custom made products that can be supplied internationally and can be an additional source of revenue. The well-positioned building is also for sale. The benefits of purchasing this building as well as the business are the growth in property value in this area, to move the business will cost more than R1 million in lost opportunity and set up costs, 5% tax deduction on property value each year for 50 years (to be confirmed with your accountant), that is if you manufacture on own building. The opportunity also exists to rent out the top floor which will bring in additional income. The business can be run 100% by the management team giving the new owner opportunities to pursue new avenues and ensuring that leisure time can also be easily accommodated. Selling prices
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Industrial Manufacturing

Manufacturing

Ref: 732

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Packaging Material Manufacturer

Western Cape (WC - Cape Town Region)

Asking Price

R 31,220,000

Annual Turnover

R 39,764,000

Monthly Cash Flow

undisclosed

This successful company has been manufacturing for the past 18 years. The company started off with the manufacturing of stretch wrap of various sizes and thickness and from this foundation has developed products not seen in the industry before. The company has since diversified into various fields of manufacture including shrink film, tubing, sheeting and pallet wrapping. With new developments in this company, the turnover is expected to double in the current financial year. The company has a national client base consisting of various blue-chip corporate companies. This is a great opportunity for a seasoned entrepreneur looking to enter the manufacturing industry. It is also a great opportunity for an existing business in a similar or related industry to expand their footprint or diversify operations. Asking price excludes stock of approximately R150,000 and VAT,
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Industrial Manufacturing

Manufacturing

Ref: 727

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Granite Suppliers

Western Cape (WC - Cape Town Region)

Asking Price

R 780,000

Annual Turnover

R 2,057,743

Monthly Cash Flow

R 64,960

This business on the West Coast is expert installers and suppliers of a range of granite, marble, quartz and engineered stone countertops and tombstones. This is a design firm offering premium granite tops for bars, kitchen, offices and expert home interior design. The owner offers every client a quality product backed by unsurpassed service and attention to detail. The area has been identified as one of the growth areas in Western Cape. The owner is hands-on involved in the management of the business. The premises are in an industrial area with a very low rent. The price of R 780 000 excludes stock of +-R 10 000 and VAT.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 717

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Profitable Manufacturing Business

Western Cape (WC - Cape Town Region)

Asking Price

R 3,345,000

Annual Turnover

R 13,684,618

Monthly Cash Flow

R 54,669

This business established in 2003 is at the forefront of the supply and manufacturing of niche products for the building industry, This business is MEIBC Compliant All products are manufactured in house using only top quality SABS approved materials. Not only do they manufacture products but also do light engineering work as well as offer a service center which can cut and bend almost any flat plate or sheeting. The current target market is Building companies, Hire companies, Hardware stores and building supply stores. Well known in the industry with long-standing relationships. Workshop staff are paid an hourly wage and can be utilized according to the workflow. Stock can be ordered as and when needed to facilitate orders. Machinery can be utilized for the manufacturing of various non-core products which can create more opportunities for more diverse product offerings. The new owner can decide on location moving forward or can add to the existing business. Various growth opportunities exist as the engineering workshop can produce a variety of different products. The hiring of the products to the industry has not been investigated and can be a new source of income. Asking Price excludes VAT.
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Industrial Manufacturing

Building and Construction

Ref: 630

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Multi-Discipline Roofing Contractor

KwaZulu - Natal (KZN)

Asking Price

R 1,784,000

Annual Turnover

R 4,034,123

Monthly Cash Flow

R 59,270

This is a commercial and industrial roofing contractor which has succeeded for over 20 years, through good times and tough times. The business also applies specialist coatings where needed. The staff are well skilled and they add to the loyalty factor of the market towards this business. Boasting a 6-month order book at times, the business needs a new owner who is technical and who can manage the staff teams and the clients, some of whom are large contractors. The Asking Price is very reasonable, with an excellent Return on Investment. This ROI can be considered even better due to the forward-order book. Here is a solid opportunity for a seasoned contractor/entrepreneur wanting an excellent return for their investment and time! Sensible offers will be considered.
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Industrial Manufacturing

Building and Construction

Ref: 629

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Steel Fabrication Enterprise

Western Cape (WC - Garden Route)

Asking Price

R 12,000,000

Annual Turnover

R 13,465,922

Monthly Cash Flow

R 314,270

This is a significant business that adds value to steel in almost every possible way. Servicing a number of industries, including the security industry, no job is too small with all work attracting the same dedicated level of service and quality attention. Very well positioned near major access routes in this Garden Route town, the business has stood the test of time. It has continued to flourish and grow through some tough times, so the formula does work. Revenue for the current year-to-date shows exceptional growth over 2018, with profit exceeding R4,8m. The administration is one of the keys to success here with reliable systems. Another key to their success is the team of cross-skilled artisans and workers, managed by a successful middle management structure. The asset base is extensive, and it all works. The premises are for sale to the astute buyer and will be a separate transaction to the business sale. The asking price excludes VAT and Stock of approximately R1m.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 626

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Profitable Small Industrial Forge

KwaZulu - Natal (KZN)

Asking Price

R 1,550,000

Annual Turnover

R 1,985,715

Monthly Cash Flow

R 49,995

This interesting business is a solid opportunity, with realistic growth prospects. Forging of robust tooling is the key activity, and over time with their expertise they developed a range of truck tyre levers. This may appear bland, but the product has a reputation in African markets for strength and reliability. Made in Africa, for Africa! This one of a kind business is owner run, but systems have been installed to enable some flexibility. It is considered a reasonable opportunity for an investor who could employ a manager to know and grow the business operations. The owner has not availed of growth potential because he was comfortable with the business as is. The business is priced correctly to give the new owner an excellent ROI, with reasonable and attainable growth options.
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Industrial Manufacturing

Manufacturing

Ref: 598

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Aluminium Framed Window & Door Fitter & Installer

Western Cape (WC - Garden Route)

Asking Price

R 4,995,500

Annual Turnover

R 11,343,434

Monthly Cash Flow

R 153,360

This well-established business has been trading for more than 3 decades. They have built up a solid reputation in the industry, servicing the greater Garden Route region. The business specialises in the fitment and installation of top quality aluminium products that are stylish enough to be used in modern residential developments and tough enough to be used in both commercial and industrial applications. Amongst the work that they undertake are sliding doors, aluminium windows, enclosing of outdoor areas such as balconies, shopfitting, and other aluminium and glass requirements. The company is a market leader with a substantial competitive advantage due to its size and capabilities. There are proven systems and excellent staff in place. The owner’s focus has successfully been to be unique and dynamic in the quality of products manufactured and services offered to clients and this sets them apart from their competitors. Most of the work comes from repeat customers. The owner oversees the business operations in a management capacity, and he is backed by an experienced operations manager. This is an outstanding business with a premium market share in the region, and trades successfully year on year, with growth and excellent opportunities for future growth. Asking price excludes VAT and stock of R400,000.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 531

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Office Furniture Manufacturer

Western Cape (WC - Garden Route)

Asking Price

R 12,500,000

Annual Turnover

R 21,653,679

Monthly Cash Flow

R 200,621

This profitable and successful manufacturing concern was established more than 20 years ago, operating from the Garden Route, servicing clients nationally. This business is one of the top leading and most trusted workplace furniture manufacturers, supplying a network of established clients both in the wholesale and retail market in South Africa. This is the ideal business offering a quality lifestyle in the Garden Route while servicing a client base with a national footprint. This operation offers diverse income streams. Exceptional growth in the 2019/2020 financial year shows a 14% increase in turnover, with net profits increasing by 21%. The seller is prepared to stay on for a period to ensure smooth handover and transition. Included in the selling price are assets to the value of more than R 7,295,000 which includes delivery vehicles. Selling price excludes stock of R 2,200,000 and VAT. The option to purchase the building can also be discussed.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 451

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Fully Equipped Engineering Workshop

Western Cape (WC - Cape Town Region)

Asking Price

R 2,230,000

Annual Turnover

R 4,893,858

Monthly Cash Flow

R 130,073

Long established family run engineering workshop offering various solutions to the trade and the man on the street. Decades-long relationships with a vast client base provide continuous work flowing through the workshop. Clients include state-owned entities as well as established businesses in the private sector. The workshop has a high asset list of well-maintained machinery that will ensure productivity is maintained. The new owner will be entering a fully operational business and be able to reap the rewards from day one. The owner has opted to retire after 35 successful years at the helm of this profitable and easily managed business. The selling price excludes stock and VAT.
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Industrial Manufacturing

Building and Construction

Ref: 443

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Engineering Business

Western Cape (WC - Cape Town Region)

Asking Price

R 1,850,000

Annual Turnover

R 3,405,703

Monthly Cash Flow

R 76,837

This well-established engineering business that is based in the Southern Suburbs of Cape Town, is now for sale, due to the current owner wanting to " travel Africa", and retire. The business has built up a loyal customer base of both architects and interior designers who specify work for their clients. Projects include large shopping centers, staircases for houses, commercial buildings, and residential commissions. The business is located in a small industrial unit with very low overheads and specialized industrial machinery. It has been established since 2007 and currently shows a very strong net profit. This is an ideal opportunity for someone in this industry wanting to relocate to Cape Town and expand on an existing and profitable business, or an existing business wanting to expand their customer base. There is a complement of 4 full-time staff members and the owner is prepared to have a hand-over period and consult if required.
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Industrial Manufacturing

Clothing/Footwear

Ref: 433

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Costume and Dance Wear Designer and Manufacturer

Western Cape (WC - Cape Town Region)

Asking Price

R 590,000

Annual Turnover

R 1,672,000

Monthly Cash Flow

R 25,000

This Costume / Dance Wear Designer and Manufacturer business in the Northern Suburbs of Western Cape has been operating very successfully with a retail presence since 1978. They produce bedazzled costumes, rhythmic gymnastics, dance, gym and swimwear, Latin, Jazz, Ballroom, Spanish, Salsa, Ballet, Tap and Hip-Hop costumes to name a few. This business has a very good reputation for producing quality articles and as a result, it enjoys a lot of repeat business and referrals. With their own sewing room, all their costumes are made on-site, ensuring the best quality for each and every costume. It is now at the stage where mothers bring their daughters to be outfitted where they too purchased their first dance costume. This niche business has been providing the South African market and beyond for over 25 years. Customers come from, amongst others, Namibia, Botswana, Zimbabwe, and Nigeria, as their reputation for service and value has spread across the continent. Selling Price R 590 000 excl VAT and Stock of +-R 150 000.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 416

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Profitable Automated Manufacturing Business

Western Cape (WC - Cape Town Region)

Asking Price

R 505,800

Annual Turnover

R 4,069,992

Monthly Cash Flow

R 30,000

This supplier of industrial equipment specializes in setting up start-up business entrepreneurs who are interested in setting up businesses in the manufacturing industry. They specialize in automated manufacturing machines including toilet paper processing machines and corrugated iron roof roll forming machines. They supply and train startup companies and established businesses, as well as supply clients with specific machinery. The business also provides a service of designing and building factories for the business startup if required. The company ensures the clients' needs are met right from the beginning and follow a strict business ethic of offering excellent service to customers from order to delivery, as well as training. The business is able to service and supply clients throughout South Africa as well as across its borders. The toilet paper processing line consists of 3 machines for R505,800; a rewinding and gluing machine, a cutting machine, and a sealing and packaging machine. These 3 machines perform all processes necessary for the production of toilet rolls. This production line is simple to use and only requires 3 people to operate it. The company's projected income statement for the toilet paper processing line projects a potential profit of R1,042,000 in the first year alone. The projected income statement works on the assumption that a person purchasing these machines would rent his/her own industrial premises but should they wish to have a factory designed and built on their property, the company offers this option as well. You also have the option to purchase a fully automated toilet roll paper core making machine for R336,300 – this automatically manufactures the cardboard core of the toilet rolls. However, you are able to purchase this ready-produced from the paper mills.
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Industrial Manufacturing

Manufacturing/Engineering

Ref: 335

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Decor, Furniture Manufacturer

Western Cape (WC - Garden Route)

Asking Price

R 2,860,000

Annual Turnover

R 6,671,642

Monthly Cash Flow

R 108,333

This well established, family furniture emporium provides decorators and clients alike with professional advice and service, custom-built luxury furnishings and accessories all under one roof. The business was established, by the current owner, in 1994 and is situated in the heart of the Garden Route. This interior decor company with factory on-premises services both the home and leisure industries with decor custom made furniture, curtains, blinds, shutters, upholstery, and fabrics. Experienced fitters and seamstresses, on-site, manufacture these custom luxury furnishings and accessories both indoor and outdoor. The current owners concentrate on marketing, sales, and administration while a Management structure handles the day-to-day running of the business. The business is ideal for a creative person who enjoys design, a good income (ROI of over 40% !), and living in an upmarket environment. The asking price R2,860,000 excludes stock of R450,000 and VAT.
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Confidentiality Agreement

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Questions about buying a business in South Africa

Most of the businesses for sale with us are valued on the following;

  • The amount of money they earn
  • The desirability of the industry
  • The associated risk factors

Higher prices will be paid for businesses in more desirable industries that are operating in a market perceived as low risk. These types of businesses are in strong demand. Therefore, the value of the business will be greater than for one in a less sought-after industry and perceived to have a higher risk factor attached to it, even though both businesses may make the same amount of money.

Most small owner-operated businesses are valued according to the cash surplus available to the owner. Depending on the industry this will vary. The amount will depend on factors such as the industry, location and length of time in business.

Larger businesses are valued on either a return on investment (ROI) or a price to earnings ratio (PE). Once again this will vary depending on the industry and the amount of net profit generated by the business.
When you have your first meeting with one of our business brokers, they will give you an overview of the values of businesses within the industry sectors of interest to you.

Some industries are very sought after, and newly listed businesses sell quickly. To ensure you are aware of new listings we provide a unique service by sending you an automatic email with details of any new listings that match the criteria you have pre-selected when registering for this exclusive service.
Our business brokers can register you, or you can do it online through the Register toolbar.
Many of the businesses we list are sold before they are advertised. By registering to buy a business, you will receive priority notification of all appropriate new listings from any one of our team of brokers, not just from the broker you have initially met with.

If you are serious about buying a business, you should make an appointment with one of our specialist business brokers who is knowledgeable in the industry sector that interests you. Our business brokers specialise in the sale of businesses in which they have prior industry experience thus giving you access to industry-specific knowledge. Your broker will ask specific questions in order to find the business that is best suited to your requirements. And don’t forget to search for businesses for sale by using the Businesses4Sale search bar.

You will be asked to sign a Deed of Confidentiality before receiving confidential information on any business you are contemplating buying. This protects the owner of the business by ensuring the information you receive will be treated as confidential and not passed on to other parties. Business owners want to be assured that the information given out to a pre-qualified buyer will be treated in confidence.

Once you have decided to buy a business, you will benefit from an initial meeting with one of our brokers, and they will have your name in mind when any new business becomes available.

When you initially look at a business, certain information will be supplied. However, in some cases, the owner of the business will be reluctant to reveal too much about the business until an offer is made. Many aspects in the operation of a business are commercially sensitive and confidential, thus a business owner would not be wise to disclose all until a prospective purchaser has indicated a serious intention to purchase by making a conditional offer.

 

A conditional offer is normally subject to the purchaser performing due diligence, a process whereby you as the purchaser requests, for scrutiny, specific information on the operation of the business. The owner will supply this information under due diligence. The buyer must maintain the strictest of confidentiality through this process and must not disclose any information to other parties except any professional advisors they are using in the process.

 

The due diligence process is for the benefit of the purchaser, giving you time to complete the verification process. If satisfied with the end result, the agreement proceeds, and you become the proud owner of your new business. If, however, you are not satisfied with the results of the due diligence, then the owner is advised accordingly, and the agreement comes to an end. The deposit money held in trust is refunded in full.

Before you begin looking to buy a business the first step is to work out what money you have available. There is no point in looking at businesses for sale that are beyond what you can afford. Calculate how much cash you have available and what other assets such as property you could borrow against.

 

When dealing with a business broker tell them how much you have to invest, then they will direct you to suitable businesses within your price range. The business broker will also know which businesses for sale are more suitable to finance, or if the current owner is prepared to finance some of the purchase price. If the broker knows what funds you have available, this will help them to help you.

 

With some types of business, it can be difficult to borrow money using just the business as security, due to the difficulty a bank may have in securing its loan. i.e. a retail store’s asset is the stock which it is constantly selling off. Therefore, the bank would not have any actual security. If you have a house or investment property, you may be able to use this as security for a mortgage to buy the business, thereby requiring very little actual cash.

Once again, buying a business through a broker will help you in this process. The business broker will explain the process to you and guide you through it.

The business broker will prepare the sale and purchase agreement for you. This is the document used for making an offer to purchase the business and needs to include special conditions to protect you throughout the process. Likewise, the owner of the business will want to know that the confidentiality of his business is protected through this process.

 

The agreement contains conditions that protect you, the purchaser and also the owner of the business. The document details information regarding the business along with the price you are offering and the special conditions relative to the offer. At this stage, you will also need to pay a deposit. If you are buying through a licenced Real Estate company such as Businesses4Sale the deposit is held in a trust account until the agreement becomes unconditional. If the conditions upon which you are prepared to buy the business are not met, then your deposit is refunded in full without any deductions. The trust account is audited and operated under very strict legal requirements.

 

Before signing the agreement, it may be advisable to have your lawyer review the agreement. When choosing a lawyer, it is important to use one familiar with the process of buying a business. Business brokers are not qualified to give legal advice, and likewise, lawyers are not experienced in selling businesses. Your lawyer will be looking after your interests just as the lawyer for the seller will be doing for their client, and the agreement must be workable for both parties. Ultimately the lawyer works for you, and you must have a say in everything that is done. Once you have signed the agreement, it is then presented to the business owner who will either accept it or make the necessary alterations before returning the agreement to you for your acceptance or further alteration. This is called negotiation and the agreement may go back and forth several times until both parties are in agreement. This is the work of the business broker who will liaise between both parties and often, through experience, bring solutions that can result in both parties reaching an agreement.

Gathering all the information you need to make an informed decision should start with the basics.

 

Price – is the business within your budget and can you fund the purchase?
Location – is the business suitable for you and is it in a good area for this type of business?
Lease – how long is the lease and are there rights of renewal (ROR)?
Rent – how much is the rent and other associated outgoings?
Staff – how many employees (full-time or part-time)?
Income – how much money will you earn? How long has the business been operating?

Confidentiality is paramount, and your business broker will arrange a time with the business owner for you to inspect the business.

 

A physical inspection of the business should come at a time when you have considered the financial information given to you, are satisfied with this and wish to proceed further. Remember, however, that the owner of a business will be very sensitive about your visit. On the one hand they will want to provide you with all the information you require, yet on the other hand, they will not want the staff to know why you are really there. Please respect this sensitivity and have the courtesy not to embarrass the owner.

We are often asked what the perfect business is. There is no perfect business as each business and industry has its own unique set of challenges for the owner. It is important to buy a business in an industry that you relate to and believe you can learn and be comfortable with. We have sold businesses where the owners have moved into an industry with no experience but they could relate well to that industry. Look to buy a business with an eye towards what you can do with it, how you can improve it and how you can use your ideas and enthusiasm to make it more profitable and productive.

 

A new owner can sometimes see potential in a business that the current owner can’t see simply because of the new owner’s skills. Whatever the type of business, make sure that it will be fun for you and you will enjoy what you do.

A professional business broker can provide you with many different business opportunities including some that you may never have considered. Frequently we have people buying businesses they had never considered buying until the business broker explained how this business could be suited to them. All our brokers have owned their own businesses, understand and relate to the process you as a buyer are going through and can provide you with helpful information on the business you are considering buying.
An experienced specialist business broker has industry knowledge that can assist you when considering buying a business and will normally have a selection of businesses for you to compare. Our brokers have prepared the necessary information, gathered financial documentation and compiled it in an information memorandum for you to review.

 

There is no cost to you in buying through a business broker; their fee is paid by the seller.

It is important to have a business broker who is knowledgeable in the industry you want to buy into. Our brokers specialise in business categories that they have experience in, thus giving you a business broker knowledgeable in that industry and experienced in the process of buying and selling a business.

Please use the search bar on the top right-hand side to find that special business you are looking for and Register with us for regular email updates. If you would like an Advanced Search click here. You can also contact a Businesses4Sale broker directly and enhance the probability of finding the right business for you.

When you make contact with our company, ask for the broker who specialises in the type of business you are seeking to buy. At any one time, Businesses4Sale has over 220 businesses for sale.

It is important to have a business broker who is knowledgeable in the industry you want to buy into. Our brokers specialise in business categories that they have experience in, thus giving you a business broker knowledgeable in that industry and experienced in the process of buying and selling a business.

Please use the search bar on the top right-hand side to find that special business you are looking for and Register with us for regular email updates. If you would like an Advanced Search click here. You can also contact a Businesses4Sale broker directly and enhance the probability of finding the right business for you.

When you make contact with our company, ask for the broker who specialises in the type of business you are seeking to buy. At any one time, Businesses4Sale has over 220 businesses for sale.

Business Support Toll-Free Number:  087 820 4600

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